Mgmt Mtg Takes: Loitering In a Class-of-Its-Own

Research evidence excerpt

Mgmt Mtg Takes: Loitering In a Class-of-Its-Own

Elbit Systems Ltd. (ESLT)

Equity Research

June 17, 2026

2. ESA Revenue Grows +MSD Approaching $2BB by

2028E

Elbit Systems of America (ESA) is the company's US-based subsidiary that provides products and

systems to US military, FMS, homeland security, medical instrumentation, and commercial aviation

customers. ESA operates as a Special Security Agreement (SSA), meaning the subsidiary operates

and reports as an independent affiliate with its own board and different government IT system. ESA

has ~3.3k employees (~17% of total ESLT headcount of ~19k) across over 16 locations in the US. All

ESA senior officials are US Citizens.

ESA operates in 4 divisions:

1. Electronic systems: Electronic component repair, weapon seekers, Head Up Displays (HUDs),•

Apache mission systems processor, avionics & electronics on F-35 & F-15EX.

2. Integrated Solutions: Active protection (Iron Fist working w/ GD Ordnance and Tactical•

Systems), border security, counter UAS, land combat & ground systems integration, precision

fires, C4I, international military programs.

3. Marine Systems: Sensing out of sub-surface domain, countermeasures, active decoys,•

unmanned systems, Sonobuoys through Sparton.

4. Warfighter Systems: Night vision, soldier systems, precision targeting.•

Mgmt's framework for ESA over the long term is for M-HSD growth w/ operating income growing faster

than sales. The Electronic Systems business is a +MSD grower while Maritime Systems and Warfighter

Systems are both higher volume and lower mix w/ Maritime historically seeing spikes in demand.

The Night Vision business within Warfighter Systems demonstrated strong growth increasing from

$200MM in revs in 2024 to ~$400MM in 2025 w/ the expectation for continued growth going forward